Blog o' RAMA

The Apple iPhone-- A Marketing Mix Perspective

On Friday June 29, the Apple iPhone became available for sale at AT&T and Apple stores.  The news showed customers waiting in line to buy this device.  Even here in Rochester, NY as I drove by the AT&T store, a news crew was filming the line outside the store.
What is the buzz about the Apple iPhone?  Let's take a look at the marketing mix.

Product -- According to the description on the AT&T site, the iPhone combine three amazing products- a mobile phone, wide screen iPod, and a breakthrough internet device--into one small, lightweight, hand held device with the best e-mail ever on a mobile phone, full screen with browsing, multi touch screen, and applications.  It does look cool and is innovative but does it deliver on the hype?  Several reviews have been published, check them out to learn more on features and performance.

1-CNET editor's review

2- Businessweek.com's web exclusive Steven Levy's, At Last -the iPhone

3- USA Today's Edward Baig's Apple's iPhone Isn't Perfect But It's Worthy of the Hype

Blackberry and Treo users are not willing to give up their devices for now.  The iPhone doesn't seem to be equipped for enterprise systems right now.  Read more in a Businessweek.com article, Making the iPhones Better for Business.

Place -- AT&T is the exclusive carrier for the iPhone.  What is novel about the phone service activation strategy is that consumers sign up for AT&T cellular services via the internet on iTunes. Phones are sold in AT&T stores, Apple retail stores, and Apple online store.  Typically carriers make all the decisions on phone prices, how phones are marketed, and which services to offer. This time Apple defined the 16 services that the iPhone has and of course the sign up method on iTunes instead of through AT&T.

Promotion-- Typically Apple announces new products very close to the time when the product is available for sale.  Not this time-the iPhone hype has been buzzing for about 6 months when the iPhone announcement was made at Mac World.  The halo effect from its popular iPods will have a positive effect on some consumers' perceptions of the iPhone.    Apple had kept advertising to a minimum since the announcement in January.   According to Apple Insider, TB WA is the new agency of record handling the iPhone campaign.

Price -- The iPhone 4 GB version sells for $499 and the 8 GB version sells for $599.  Monthly phone service charges start at 59.99 and you have to sign up for a 2 year service agreement.   Read a Businessweek.com article, Taking the iPhone Apart to learn about a tear down analysis that estimates what it costs Apple to make the iPhone.
How have sales been for the iPhone?  Analysts estimate that during the first weekend of sales, between 500,000 and 700,000 phones were sold. Apple plans to sell 10 million phones in 2008.  Only time will tell if the iPhone meets Apple's sales and revenue expectations.

I had the chance to visit an Apple store to check out the iPhone.  It is a a cool looking device.  The touch screen and icons were easy to use and it was lightweight.  For those consumers that are innovators and early adopters and are willing to pay the price-- the iPhone may be the right device.   
In my opinion, I was enticed by the user interface but the price point is too high for me and I have other devices that have similar features.    What do you think about the iPhone?  Do you own an iPhone or know someone who owns one?
   

What's New With Corporate Blogs?

It's time to check out a couple of corporate blogs that have been active in the blogosphere for over 6 months.  Eastman Kodak and Dell are incorporating new ideas in their blogs.

In a previous post, I wrote about Kodak's A Thousand Words blog which made its debut in September 2006.  Kodak created a second blog called A Thousand Nerds in January 2007.  A Thousand Nerds blog is a place where Kodak scientists, researchers, and inventors share ideas and knowledge about digital imaging technology.  The post topics include cool new technology, innovation, employee experiences, and customer successes.  What is new on A Thousand Nerds -- Kodak's CEO, Antonio Perez became a blogger and wrote a post titled Notorious Decadence .  Kudos to Kodak for using the blog as a way for the CEO to join the conversation with customers.

Direct2Dell is Dell's blog which has been in existence since July 2006.  Dell continues to improve conversations with customers.   Recently Dell created Ideastorm an online community where customers can submit input and ideas on products and services.  Once they are posted others can vote to promote or demote these ideas.

Also Dell introduced a Spanish version of Direct2Dell called DellenDirecto in April 2007.  According to Dell, they created the blog for several reasons: Spanish is spoken by 330 million people around the world as a first language, Spanish has become the fourth most important language in the blogosphere, and Spanish speaking customers around the globe have a channel to communicate with Dell in Spanish.  Some of the posts are global and are the same as posted in the English version.  Others speak about Latin American operations and activities in Spain.  Kudos to Dell for reaching out to customers in another language. 

What are other bloggers saying about Kodak and Dell's blogs?  Mack Collier from The Viral Garden has initiated a new feature called Company Blog Checkup.  He reviewed Kodak's blogs and Dell's blogs recently.  What company blogs have you enjoyed reading lately?